IPO Market Week in Review

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 |  Includes: MDMD, MDT, MMYT, RP
by: Renaissance Capital IPO Research

Even as global markets faltered this week on macroeconomic fears, IPO activity remained strong with three of five companies posting strong first day gains and the SEC receiving the highest number of initial S-1 filings in five months.

MakeMyTrip (NASDAQ:MMYT)
, the largest online travel company in India, was the week's clear winner. After raising $70 million by offering 5 million shares at the top of its $12-$14 range, the company saw its stock soar 89% in its debut, posting the largest first-day pop since athenahealth (NASDAQ:ATHN) went public in September 2007 (97% first-day pop). MakeMyTrip attracted IPO investor interest thanks to its leading share in India's quickly growing online travel market and its scalable platform.

On-demand property software firm RealPage (NASDAQ:RP) held its own, rising 32% in its first day of trading and ranking fifth on our list of largest first-day pops year-to-date, despite pricing its $135 million IPO below the range. RealPage, whose comprehensive suite of software solutions allows property managers to boost sales and minimize costs, boasts a track record of profitable growth and a business model marked by visible revenue streams.

China Kanghui Holdings (KH), the #2 provider of orthopedic implants in China, raised $68 million by selling 6.7 million ADSs at $10.25, the midpoint of its proposed range. The stock rose 19% in its debut. The medical device company enjoys a leading position in China's fragmented and underpenetrated orthopedic implant market, which will continue to be driven by the country's growing middle class.

MediaMind Technologies (NASDAQ:MDMD) and Park Sterling Bank (PTSB) were the laggards of the crop with both stocks ending the week in negative territory. MediaMind provides digital advertising campaign management solutions to advertising agencies; the company raised $58 million by offering 5 million shares at $11.50, 23% below its $14-$16 range. The stock was down 5% by the end of the week. Park Sterling Bank, a recently formed commercial bank with three offices located in North Carolina, saw its stock drop 4% in its debut. The bank raised $150 million by offering 23.1 million shares at $6.50, below the $9-$11 range.

DLC Realty Trust (NYSE:DLC), a REIT that was also slated on the IPO calendar for this week, shelved its deal, citing adverse market conditions.

Though the IPO market is expected to see a pause in activity for the next few weeks, a steady stream of IPO filings bodes well for post-Labor Day activity. Ten companies filed initial S-1s with the SEC this week, making it the most active week in filings since mid-May, including well-known online communications company Skype (SKP).